Question

Use the following appropriate amounts to calculate net income: Revenues, $11,100; Liabilities, $4,400; Expenses, $3,400; Assets, $17,200; Dividends, $1,500.

Answer 1

$7,700

Step-by-step explanation:

The net income shows a difference between the revenues and the expense.

And, the same is reflected in the statement of the retained earnings

In mathematically,

Net income = Revenue - expenses

= $11,100 - $3,400

= $7,700

Since the revenue is more than the expense, so the firm has earned a net income of $7,700